At Engine Property Group Sebastian Golotta dives into the amendments to the Owners Corporations Act to assist you to understand the changes when making your home “future ready”.
The Owners Corporation Act defines a sustainability item as anything that eliminates or reduces a reliance on non‑sustainable energy sources and includes: a solar hot water system, solar panels, and a roof with colours having a particular solar absorption value.
It is yet to be seen what impact this new legislation will have on the sustainability of owners corporations, but it is a positive step in the recognition that these upgrades should not be impeded. In fact, they will be crucial for us to achieve net zero.
What can we do- without needing approval?
Here is what the Owners Corporation Act states.
OWNERS CORPORATIONS AND OTHER ACTS AMENDMENT ACT 2021 (NO. 4 OF 2021) - SECT 58
New section 138B inserted
After section 138A of the Owners Corporations Act 2006 insert —
" 138B Power to make rules regarding external alterations and other works affecting lot owners
(1) Subject to subsection
(2), an owners corporation may make rules in respect of proposed works to renovate or alter the external appearance of a lot—
(a) to protect the quiet enjoyment of all other lots and the common property during those works; and
(b) to protect the structural integrity of any building on the plan of subdivision from those works; and
(c) to ensure the market value of any other lot does not decrease as a result of those works.
(2) An owners corporation must not make rules that unreasonably prohibit the installation of sustainability items on the exterior of a lot.
(3) For the purposes of subsection (2)—
(a) a prohibition on the installation of a sustainable item only on aesthetic grounds is taken to be unreasonable; and
(b) a requirement that the location of, or the works involved in installing, the sustainability item must not impede reasonable access to, or the user of, any other lot or the common property is taken to be reasonable.
(4) "sustainability item" means anything that eliminates or reduces a reliance on non‑sustainable energy sources and includes—
(a) a solar hot water system; and
(b) solar energy panels; and
(c) a roof with colours having a particular solar absorption value.".
Model rules
When do model rules apply for your Owners Corporation. If the model rules provide for a matter and the rules of the Owners Corporation do not provide for that matter, the model rules relating to that matter are deemed to be included in the rules of the owners corporation.
What does the model rule for sustainability improvements state.
5.2 (.3 .4 .5) External appearance of lots
(3) The owners corporation cannot unreasonably prohibit the installation of sustainability items on the exterior of the lot, including by prohibiting the installation of a sustainability item only on aesthetic grounds. Sch. 2 rule 5.2(3) Schedule 2—Model rules for an owners corporation
(4) The owners corporation may require that the location of a sustainability item, or the works involved in installing a sustainability item, must not unreasonably disrupt the quiet enjoyment of other lot owners or occupiers or impede reasonable access to, or the use of, any other lot or the common property.
(5) The owners corporation may impose reasonable conditions on the installation of a sustainability item on the exterior of the lot related to the colour, mounting and location of the sustainability item provided that these conditions do not increase the cost of installing the sustainability item or reduce its impact as a sustainability item
An owners corporation must not make rules that unreasonably prohibit the installation of sustainability items on the exterior of a lot.
A prohibition on the installation of a sustainability item only on aesthetic grounds is taken to be unreasonable; and a requirement that the location of, or the works involved in installing, the sustainability item must not impede reasonable access to, or the use of, any other lot or the common property is taken to be reasonable.
Under the Act, a sustainability item means anything that eliminates or reduces a reliance on non‑sustainable energy sources and includes—
(a) a solar hot water system; and
(b) solar energy panels; and
(c) a roof with colours having a particular solar absorption value
So what does this mean for you
It is expressly stated in the amended Act that an owners corporation must not make rules that unreasonably prohibit the installation of sustainability items (such as solar hot water systems, solar energy panels and a roof with colours having a particular solar absorption value) on the exterior of a lot.
If you need advice or assistance with any section of the act or sustainability please contact Engine Property Group office, Merit Arpaci Business Development Manager, Sebastian Golotta Sustainability Manager, we will be happy to assist you.
